In 1980, the economies of China and India were almost the same in terms of gross domestic product (GDP). India's GDP per capita was, in fact, slightly higher than that of its much larger eastern neighbour. Then, the Chinese economy grew at an average rate of 10 per cent between 1980 and 2010, leaving India far behind. In fact, Chinese manufacturing sector is presently eight times the size of India's. There are many reasons for China's rapid pace of growth. These include business-friendly environment created by the setting up of Special Economic Zones and business-friendly labour policies.